Unemployment in Texas slipped to 6.2 percent in November from 6.6 percent in October, according to the Dallas Fed. In the San Antonio metropolitan area, which takes in New Braunfels, unemployment dropped from 6.1 percent to 5.8 percent.

Four years ago, Texas reported an unemployment rate of 6 percent, while San Antonio's was 5.7 percent.

“When you start talking about unemployment rate in the 5s, you're starting to talk about, maybe, bouncing up against some labor market tightness,” said Keith Phillips, senior economic policy advisor at the San Antonio branch of the Dallas Fed. “It's kind of time to acknowledge that we've recovered and we're expanding.”

However, Phillips said the state's hiring boom had begun to slow toward the end of the year. He chalked it up to the ongoing fight in Washington over what to do about the “fiscal cliff” — the tax increases and significant spending cuts that's expected to kick in Jan. 1 if President Barack Obama and Congress don't strike a deficit-reduction deal.

Nevertheless, Phillips sees San Antonio finishing the year strong.

“The thing that's been helping growth in San Antonio has been a real strong pickup in construction,” Phillips said.

Construction hiring, he added, has been accelerated, riding on an increase in new construction of single-family homes.

Statewide, the booming oil-and-gas shale plays — including the Eagle Ford Shale in South Texas — and the revival of fields in West Texas helped buffer the state against some of the impacts of the Great Recession, and contributed to Texas' economic resurgence.

“If you look at October over October, Texas was the second-fastest-growing state after North Dakota. Everyone knows what's driving North Dakota, right?” he asked. Answer: oil and gas exploration. “We have two of the three most active oil and gas plays in the nation” in Texas.

The tremendous growth in the Eagle Ford Shale, he said, may explain the 7.3 percent annual rate of growth in professional and business services — such as legal and accounting work — in San Antonio so far this year, he said.

Data from the Texas Workforce Commission, which isn't adjusted for seasonal employment swings, showed San Antonio gained 1,700 jobs over October and has gained 21,000 jobs over the past year.

“I wouldn't necessarily say that (recruiting job candidates) getting easier,” said Ben Dolan of locally based Deacon Recruiting. Unemployment among the better educated and higher skilled segments of the workforce, he added, has been declining for a while. “Our business has been strong. The year has ended very strong.”
nhicks@express-news.net